Steel Raw Materials Focus

SBB Conference Presentation

Mike Henry
President, Marketing
September 30, 2010
Disclaimer

Reliance on Third Party Information

The views expressed here contain information that has been derived from publicly available sources that have not been independently verified. No
representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon
as a recommendation or forecast by BHP Billiton.

Forward Looking Statements

This presentation includes forward-looking statements within the meaning of the U.S. Securities Litigation Reform Act of 1995 regarding future
events and the future financial performance of BHP Billiton. These forward-looking statements are not guarantees or predictions of future
performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause
actual results to differ materially from those expressed in the statements contained in this presentation. For more detail on those risks, you should
refer to the sections of our annual report on Form 20-F for the year ended 30 June 2010 entitled “Risk factors”, “Forward looking statements” and
“Operating and financial review and prospects” filed with the U.S. Securities and Exchange Commission.

No Offer of Securities
Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell BHP Billiton securities in any
jurisdiction.

Non-GAAP Financial Information

BHP Billiton results are reported under International Financial Reporting Standards (IFRS). References to Underlying EBIT and EBITDA exclude
any exceptional items. A reconciliation to statutory EBIT is contained within the profit announcement, available at our website
www.bhpbilliton.com.

Cautionary Note to US Investors

The SEC generally permits mining companies in their filings with the SEC to disclose only those mineral deposits that the company can
economically and legally extract. Certain terms in this presentation, including "mineral resources", "measured resources", "indicated resources",
"inferred resources", "resource life" and "potential mineralisation" would not generally be permitted in an SEC filing. The material denoted by such
terms is not proven or probable reserves as such terms are used in the SEC's Industry Guide 7, and there can be no assurance that BHP Billiton
will be able to convert such material to proven or probable reserves or extract such material economically. BHP Billiton urges investors to refer to
its US SEC Form 20-F filing for the fiscal year ended 30 June 2009 for its most recent statement of Ore Reserves calculated in accordance with
Industry Guide 7.

Mike Henry, SBB Conference. 30 September, 2010 Slide 2

Agenda

 BHP Billiton in Context

 Long Term Demand Drivers
 Our Supply Response
 Progress on Shorter Term Pricing

Mike Henry, SBB Conference. 30 September, 2010 Slide 3

Major supplier of all four steelmaking raw
materials
Petroleum Aluminium Base Metals
A significant oil and gas exploration A global producer of bauxite, alumina and A leading global producer of copper,
and production business aluminium based on net third party sales silver and lead

Diamonds & Specialty Products Stainless Steel Materials Energy Coal

EKATI Diamond Mine is one of the world’s Major global nickel ore and refined nickel One of the world's largest producers and
largest gem quality diamond producers producer marketers of export thermal coal

Manganese Metallurgical Coal Iron Ore

Operations produce a combination of ores, Produce and market high quality hard coking One of the world’s premier suppliers of iron ore
alloys and metal coals for the international steel industry to the international steel industry

Aluminium
Base Metals
Diamonds & Specialty Products
Energy Coal
Iron Ore
Manganese
Metallurgical Coal
Petroleum
Stainless Steel Materials
Offices

Note: Ranking based on production volumes. Location of markers indicative only.

Mike Henry, SBB Conference. 30 September, 2010 Slide 4

BHP Billiton competitive position

Asset Position
 Large and meaningful to BHP Billiton
 Long Life
 Low Cost
 Export Orientated Markets

Market Dynamics
 Maximise tonnes through the cycle
 Compete on our cost curve position
 Sell at market price every day

Mike Henry, SBB Conference. 30 September, 2010 Slide 5

Basin strength - Iron ore, Pilbara
Indicative Resource Distribution
BHP Billiton Nelson Point  3.4bt Ore Reserve, 16.1bt of high quality
Tenements Finucane Mineral Resource (100% basis).
BHP Billiton Mines Island
 7 open cut mines
Ore Reserve  More than 1000km rail and extensive fleet
Mineral Resource  2 major ports, currently being expanded
Potential  Large tonnages of Marra Mamba and
Mineralisation Brockman ores, available for blending, at
both Central and East Pilbara hubs
>2bt
 Benefits of concentrated resources
1 – 2bt

0.5 – 1bt • Infrastructure scale efficiencies

<0.5bt • More resource unlocked by local
blending

Central
Central Pilbara
Pilbara East
East Pilbara
Pilbara
• Smaller environmental footprint

Source: Resource base: BHP Billiton 2010 Annual Report.

Equity basis: The Mineral Resource of 16.1bt in 100% terms translates to an attributable Mineral Resource of 14.3bt. The Potential Mineralisation range of 23 to 39 Bt in 100% terms translates to an attributable Potential Mineralisation Range of 20 to
35 Bt. The Potential Mineralisation (Exploration Target) is based on probabilistic assessment of areas across the Pilbara using surface mapping, geophysics, known regional geology and some limited drill results acquired over the last 40 years of
exploration. The target range is conceptual in nature, there has not been sufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The measures “Resources”,
“potential mineralisation” and “targeted mineralisation” are not defined in the SEC’s Industry Guide 7 and the material denoted by such terms is not Proven or Probable Reserves as defined therein. There can be no assurance that we will be able to
convert all such material to Proven or Probable Reserves or to extract it economically. This BHP Billiton Mineral Resource information was sourced from and should be read together with and subject to the notes set out in the BHP Billiton 2010
Annual Report. This document can be viewed at: http://bhpbilliton.com. The mineral resource information in this slide was compiled by Heath Arvidson, a Member of the AusIMM and full time employee of BHP Billiton who has sufficient experience to
qualify as a Competent Person and who consents to publication of the estimates in the form and context in which they appear above.

Mike Henry, SBB Conference. 30 September, 2010 Slide 6

Australia is the natural supplier to Asia:
Iron Ore
2009 Major Trade Flows (Mt) – Iron Ore

CIS
17Mt 149 / 32 15Mt

China
258 / (629)
)
13 /t India
$
M t( s 204 / 114
JKT
40 d ay 0 / (160)
15
Country
117Mt ($15/t) 362Mt ($10/t)
Production (Mt) / 13 days 10 days
Net558%
S. America
Exports (Mt) 336 / 276

Australia
Mt ($/t)*
187Mt ($25/t) 371 / 365
Voyage days

33 days
Source: Trade statistics, AME, BHP Billiton Analysis. All data is for the year ended 2009. Location of the arrows are indicative. * Freight rates are spot 23/09/2010

Mike Henry, SBB Conference. 30 September, 2010 Slide 7

Basin strength – Met coal, Bowen Basin

Abbot Point
FY10 JORC Resources (a)

38 Mine life based on JORC

Marketable (years) (b)
Goonyella
Riverside
Broadmeadow 32 Dalrymple Bay 500-
100 250 >1,000 Mt
UG Red Hill
Hay Point Coal 1000

Saraji
Nov 2006: East
Peak Export
Daunia tax
Downs imposed
East
Saraji
Peak May 2004: 39
Downs VATLiskeard
rebate 30
65 removed Norwich
Park
Gregory
Crinum 6
Blackwater
Gladstone
33
100km

(a) Bubble size depicts relative coal resource size on a 100% basis. On an equity basis, as at end June 2010, BMA’s Marketable coal reserves total 1,041mt,
plus an additional 3,750mt coal resources (310mt measured, 1457 indicated and 1983mt inferred). FY10 production was 26.7mt on BHP Billiton share basis.
(b) ‘Mine Life’ is calculated on the basis of current mining rate.
(c) The resource and reserve information in this slide was compiled from the BHP Billiton 2010 Annual Report by Douglas Dunn, a Member of the AusIMM and
full time employee of BMA who has sufficient experience to qualify as a Competent Person and who consents to publication of the estimates in the form and
context in which they appear above.

Mike Henry, SBB Conference. 30 September, 2010 Slide 8

 Australia a global supplier, bias to-wards
Asia: Met Coal
2009 Major Trade flows (Mt) – Met Coal

Russia
55 / 11
Asia Canada
16Mt ($21/t) 23 / 22
18/t) EA16
18Mt ($
JKT
4 / (35)
0 / (80)
16 days USA China
46 / 33 11 days 471 / (41)
India 30
8 / (25) M
12 t(
da $1 56Mt ($13/t)
9/
ys t) 11 days
Country 26Mt ($16/t)
Production / Net Exports
14 days
Australia
139 / 134
Mt ($/t)
11Mt ($17/t)
Voyage days
34 days

Source: Trade statistics and BHP Billiton estimates.

Note: Production and trade flow figures are in million tonnes per year. All data is for the year ended 2009. Location of the arrows are indicative.

Mike Henry, SBB Conference. 30 September, 2010 Slide 9

Agenda

 BHP Billiton in Context

 Long term Demand Drivers
 Our Supply Response
 Progress on Shorter Term Pricing

Mike Henry, SBB Conference. 30 September, 2010 Slide 10

 Urbanisation and industrialisation driving
Asian commodity demand in longer term
Projected Urbanisation of India Projected Urbanisation of China
(Million) (Million) 926

54
530

+3
15
+2 572

315

214 315

1990 2005 2025 1990 2005 2025

Tot Population 839 1106 1401 1149 1307 1435

Million
Urbanisation 25 29 38 27 41 64
% Source: McKinsey 2010

Mike Henry, SBB Conference. 30 September, 2010 Slide 11

China’s urban population to reach
one billion within 20 years
China’s urban population by city size China's expected urbanisation in 2025
(Millions of people)
926
Chinese cities will have over one million
221 people living in them – Europe has 35 today
Mega
120 (10m+)

104 Big 5
(5m–10m) square metres of road will be paved
billion

572
34 316 Midsized 170 mass-transit systems could be built
(1.5m–5m)
86

40 square metres of floor space will be built – in

160 billion five million buildings

233 Small of these buildings could be skyscrapers –

(0.5m–1.5m)
149 50,000 the equivalent to constructing up to ten
New York cities

143 153 Big town

(<0.5m) – the number of times which GDP will have
5 multiplied by 2025
2005 2025
Source: McKinsey Global Institute, March 2009, “Preparing for China’s Urban Billion”.

Mike Henry, SBB Conference. 30 September, 2010 Slide 12

Steel intensity per capita grows strongly
as a nation becomes wealthier

Industrial Development & Finished Steel Consumption Growth

(kg) China/India steel intensity
1,200 Other country steel intensities

Possible path range for China by 2025

South Korea
1,000

800

China
600 today
Japan

Germany
400

USA
200

India today
0
0 5 10 15 20 25 30 35 40 45 50 55
Real GDP per Capita
(US$’000)
Source: CISA, WMM, Global Insight, BHP Billiton.

Mike Henry, SBB Conference. 30 September, 2010 Slide 13

China will account for the bulk of global
steel production growth to 2025
Global Crude Steel production
(Mtpa)

CAGR 4.3%

CAGR 4.3%

2000 Other India China 2009 Other India China 2025

Source: BHP Billiton analysis.

Mike Henry, SBB Conference. 30 September, 2010 Slide 14

China will account for the bulk of global
iron ore demand growth to 2025
Global Iron Ore Demand
(Mtpa)

Seaborne Demand CAGR

2000 - 2009 8.6%
2009 - 2025 4.9%

CAGR 4.2%

CAGR 5.4%

2000 Other India China 2009 Other India China 2025

Source: BHP Billiton analysis.

Mike Henry, SBB Conference. 30 September, 2010 Slide 15

China and India will account for the bulk of
global met coal demand growth to 2025
Global Metallurgical Coal Demand
(Mtpa)

Seaborne Demand CAGR

2000 - 2009 1.5%
2009 - 2025 5.3%

CAGR 3.3%

CAGR 5.1%

2000 Other India China 2009 Other India China 2025

Source: BHP Billiton analysis.

Mike Henry, SBB Conference. 30 September, 2010 Slide 16

Agenda

 BHP Billiton in Context

 Long Term Demand Drivers
 Our Supply Response
 Progress on Shorter Term Pricing

Mike Henry, SBB Conference. 30 September, 2010 Slide 17

 BHP Billiton has a deep, diversified
inventory of growth options
Future Options(a) Feasibility Execution
Navajo
Navajo Saraji
Saraji Laguna
Laguna NWS
NWS
Potash
Potash –– South
South Browse
Browse Yeelirrie
Yeelirrie Eastt
Eas Seca
Seca Caval
Caval
Jansen
Jansen Phase
Phase 33 Saraji
Saraji Exp
Exp Potash
Potash –– Ridge CWLH
CWLH Worsley
Worsley
LNG
LNG Ridge E&G
Young
Young E&G
Mt
Mt Arthur
Arthur Coal
Coal Potash
Potash ––
Thebe
Thebe (MACX)
(MACX) Atlantis
Atlantis Jansen Samarco
Samarco 44 Kipper
Kipper
Jansen
West
West Africa
Africa Olympic
Olympic Dam
Dam N2B
N2B Phase
Phase 22
Exploration Newcastle
Exploration Project
Project 3+
3+ Third Port
Indo
Indo Met
Met Coal
Coal WA
WA Iron
Iron Ore
Ore HPX3
HPX3 WA
WA Iron
Iron Ore
Ore Exp 2
Wards
Wards Well
Well Quantum
Quantum 22 CMSA
CMSA Heap RGP
Heap RGP 55
Leach
Leach 11
Potash
Potash Gabon
Gabon
-- Burr
Burr Guinea
Guinea
Olympic
Olympic Dam
Dam Red
Red Caroona
Caroona Alumina
Alumina Angostura
Angostura
Project
Project 22 Hill Blackwater
Blackwater Escondida
Escondida
Hill UG Kennedy
Kennedy Gas
UG
UG UG OGP
OGP 11 Turrum
Turrum Gas
GEMCO
GEMCO
DRC
DRC Macedon
Macedon
Potash Exp 2
Smelter
Smelter Potash
Ports
Mt Arthur Exp 2
Mt Arthur
Nimba
Nimba Ports Coal Potash Antamina
Potash
Resolution
Resolution Coal Potash ––
Potash (UG)
(UG) Jansen
Jansen Phase
Phase 11 Exp
-- Boulder
Boulder Daunia
Daunia Cerrejon
Cerrejon NWS
NWS Nth
Nth
NWS
NWS Spence
Spence Opt
Opt Exp
Exp Rankin
Rankin B
B
Knotty GWF Scarborough
Scarborough
Knotty GWF Hypogene EKATI
Head
Head RBM
RBM Hypogene EKATI
Mad
Mad Dog
Dog Douglas-
Douglas-
Boffa/ Phase
Phase 22 Olympic
Olympic Middelburg
Middelburg
WA
WA Iron
Iron Ore
Ore Potash
Potash Boffa/ WA
WA Iron
Iron Ore
Ore MAC20
MAC20
-- Other Rail aand Santou
Santou Dam
Dam RGP
Quantum
Quantum 11 Other Rail nd Port
Port
Refinery Goonyella
Goonyella Newcastle
RGP 66
Expansion
Expansion Refinery Project
Project 11
Expansions
Expansions Third Port
Exp 3

As at 19 August 2010
Proposed capital expenditure
Met Coal Iron Ore
≤$500m
≤$500m $501m-$2bn
$501m-$2bn $2bn+
$2bn+ Other CSG Projects

(a) Placement of Future Options not indicative of project schedule.

Mike Henry, SBB Conference. 30 September, 2010 Slide 18

Conveyor belt of WA Iron Ore growth
projects
BHP Billiton WA Iron Ore Production History
(Mt, Year ended June 2000 - 2009)
400 Long-term growth to
350Mtpa under study
350

300 RGP6
+35Mt
RGP5
250
Area C & PACE RGP1 RGP2 RGP3 +50Mt
+15Mt +10Mt +8Mt +20Mt
200
Accel. Expansion RGP4
+7Mt +26Mt
150
Area C
100 Hub

Yandi
50
Goldsworthy
Newman
Hub
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 RGP4 RGP5 RGP6 LT

Notes: 100% share; Ramp up towards RGP4 installed capacity of 155Mtpa is currently underway.
All studies and estimated capacity remain under review until they are approved for execution. Forecast production in the first full year at capacity.

Mike Henry, SBB Conference. 30 September, 2010 Slide 19

Wide range of Bowen Basin met coal
growth options …and beyond

BMA/BMC growth potential

(Mtpa, 100% basis)
115

105  Multiple “Tier One” projects

Saraji East
• Daunia (4 Mtpa)
95
Goonyella • Caval Ridge (8 Mtpa - includes
Peak Downs Expansion)
• Hay Point coal terminal expansion
85 Caval Ridge (44 Mtpa staged to 75 Mtpa)

75 Daunia  Deep inventory of growth options

• Goonyella
BMA/BMC ‘creep’
65 • Peak Downs
• Saraji
• Wards Well
55
Current operations • Blackwater
• Indonesian met coal
45

Note: Estimated production capacity based on 100% basis.

Mike Henry, SBB Conference. 30 September, 2010 Slide 20

Agenda

 BHP Billiton in Context

 Long Term Demand Drivers
 Our Supply Response
 Progress on Shorter Term Pricing

Mike Henry, SBB Conference. 30 September, 2010 Slide 21

 Why we prefer shorter term price
mechanisms
Benefits of a shorter term price mechanism
 Market players can enjoy prices truly reflective of supply and demand conditions
 No “dead-lock” on pricing when there are major disparate views on the market
 Mitigates non-performance on contracts when spot vs benchmark differentials are large

Allows individual buyers and sellers to focus on other aspects of relationship

 Differentials for the specific commodities based around value-in-use
 Product quality and consistency
 Logistics

Customer / producer relationships are important

 Either short or long term volume contracts available
 Customer focus continues
 Price risk management easily accessible for all counterparties

Mike Henry, SBB Conference. 30 September, 2010 Slide 22

 Iron Ore leading steelmaking raw materials
pricing evolution
Stages of Pricing Mechanism Evolution

Financial Iron Ore

settlement against
physical delivery  Established indices
Terminal
 Financial market participation in paper
markets
 Evolving liquidity
Financial
markets
participation

Index
pricing
Metallurgical Coal
Journalistic
pricing
 Moved to shorter term pricing April 2010
Short term  Indices established
pricing
Benchmark
pricing
 Growing liquidity

Time

Mike Henry, SBB Conference. 30 September, 2010 Slide 23

 Iron Ore market evolution continues

Seaborne + China iron ore demand Monthly variance iron ore price
(Mt) ($/dmt)
1,600 China Imports Short Term Price 30%
China Domestic Spot
ROW Seaborne Short Term Price September
1,400
China Captive 20% 2007
China Imports Annual Price
1,200 ROW Seaborne Annual Price
10%

1,000 Global short

term priced 0%
iron ore
800 likely > 1 bt
in 2010
(10%)
600

(20%) September
400
2009

200 (30%) October

2008
0 (40%)
2002 2003 2004 2005 2006 2007 2008 2009 2010E Feb Aug Feb Aug Feb Aug Feb Aug Feb
2006 2006 2007 2007 2008 2008 2009 2009 2010

Source: BCG analysis, CRU, BHP Billiton. Sources: BHP Billiton.

Mike Henry, SBB Conference. 30 September, 2010 Slide 24

 Risk management tools developing

Shanghai Steel Futures Volumes Iron Ore Swap Volumes Since Establishment
(Multiple of Total China Steel Production) (% of China Imports)

20x 12%

10%
16x

8%
12x
6%
8x
4%

4x 2%

0x 0%
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10

Sources: SHFE, WSA, SGX, BHP Billiton Analysis

Mike Henry, SBB Conference. 30 September, 2010 Slide 25

Summary

 BHP Billiton is a major supplier or raw materials to the global steel

industry, from large, long-life, low cost geographically diverse assets

 Longer term demand growth in steel is driven by urbanisation and

industrialisation of emerging markets.

 BHP Billiton is expanding supply to meet longer term demand

 Shorter term pricing will continue to evolve for all steel raw materials

Mike Henry, SBB Conference. 30 September, 2010 Slide 26

Mike Henry,
Name, Position,
SBBDepartment,
Conference.Month
30 September,
Date, Year2010 Slide 27